The Indian gems and jewelry sector has called upon its members to halt the import of rough diamonds for a period of two months, commencing on October 15. This decision stems from the global demand slowdown and the growing stockpiles held by domestic industry players. A jointly issued circular from multiple industry associations underscored the decrease in exports and the rise in polished diamond inventories.
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The gems and jewellery sector has issued a directive to its constituents, urging them to temporarily halt the import of rough diamonds for a period of two months, commencing on October 15. This decision comes in response to the diminishing worldwide demand and the increasing stockpiles held by domestic industry players.
The decline in demand for unmounted polished diamonds and jewellery from major consumer economies like the USA and China has been quite substantial in recent quarters. This downturn can be attributed to the record-high levels witnessed in 2021 and 2022, which have led to a noticeable deceleration in order placements.
According to a circular issued jointly by the Gem Jewellery Export Promotion Council (GJEPC), Bharat Diamond Bourse, Surat Diamond Bourse, Mumbai Diamond Merchants Association and Surat Diamond Association, “country’s exports have declined by 25 per cent during January-August, with a similar trend in September. Due to such factors, our inventories in polished diamonds have increased over the past few months and prices are softer as an effect of this mismatch in demand vs. supply.”
Mining companies are consistently selling the rough diamonds they extract, regardless of the current demand conditions in the midstream segment. In a broader context, the midstream segment encompasses the polishing and manufacturing aspects of the diamond industry.
The GJEPC expressed its commitment to revitalizing demand in key markets by collaborating with various trade associations, government entities, the Natural Diamond Council, rough diamond mining firms, and similar organizations in the United States.
“In parallel, we are actively investigating new markets like the GCC, Vietnam, Cambodia, Myanmar, Thailand, and more. In the current year, we achieved a significant milestone by establishing a specialized diamond section within the India International Jewellery Show (IIJS), leading to a remarkable surge in diamond demand across the Middle East and the Indian subcontinent,” GJEPC further stated.
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